Intuit Stock Hits Fresh Highs, but Rally Is at Risk

Intuit Inc. (INTU​) shares jumped nearly 1.5% on Friday after Oppenheimer analysts reiterated their Overweight rating and raised their price target to $159.00 from $146.00. Oppenheimer analyst Scott Schneeberger indicated that he is "incrementally comfortable" that Intuit's consumer division can deliver upon its 7% to 9% year-over-year revenue growth guidance for fiscal 2018 by more effectively capturing "free" customers.

Earlier last week, the company also announced plans to acquire the cloud-based software-as-a-service company Exactor, which provides sales and use tax calculations and filings. Management believes that the technology will help expand its Quickbooks platform with valuable functionality to solidify its lead. Exactor's staff will also join Intuit and could help enhance the platform over the coming quarters. (See also: Intuit Stock Has the Dividend Growth Big Investors Like.)

Traders should watch for some consolidation within the price channel next week given the lofty RSI readings. If the stock continues its rally, traders should watch for a breakout from trendline resistance at around $153.50 next week to new all-time highs. Traders should maintain a bullish bias on the stock given the robust uptrend over the past year, but lofty RSI levels and trendline resistance could lead to some near-term consolidation. (For more, see: Intuit Q4 Earnings and Revenues Top, CFO Steps Down.)

Chart courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.